IEX Sees 8% Volume Increase YoY in June ’23 to Reach 8946 MU

Indian Energy Exchange (IEX), India’s premier energy exchange, achieved 8946 MU overall volume in June 2023, including green market trade of 272 MU, 5.33 lac RECs (equivalent to 533 MU) and 2.44 lac ESCerts (equivalent to 244 MU). The overall volume during the month was higher 8% on YoY basis.

IEX achieved 25,125 MU volume across all segments during Q1 FY ’24, growing 8% over Q1 FY’23.

The price during June ‘23 at Rs. 5.37/unit, declined 17% YoY, while the average market clearing price during the Q1 FY ’24 period was Rs. 5.17/unit, decline of 33% over the corresponding quarter last year. Supply side scenario during the quarter improved due to enhanced coal supply, reduction in e-auction coal prices, and consistently declining imported coal and gas prices. Increased liquidity on the Exchange led to sharp correction in prices, resulting in optimisation opportunities and higher clearance for Discoms & Open Access consumers.

As per data published by GRID-INDIA, energy met in the country during June ’23 stood at 140 BU, increasing 4.3% on YoY basis.

Electricity Market: Day- Ahead, Term-Ahead & Real-Time Market

The Day-Ahead Market (DAM) volume increased to 4103 MU in June ‘23 from 4065 MU in June ’22, growing 1% YoY. The average market clearing price was Rs. 5.37/unit during the month, lower by 17% over the corresponding month last year. The DAM segment registered 12501 MU during Q1 FY ’24, 11% growth over Q1 FY ’23 due to improved prices.

The Real-Time Electricity Market (RTM) achieved its highest-ever monthly volume of 2675 MU during June ‘23, registering 21 % YoY growth. There were 765 participants in this segment during the month. During the month of June ’23, RTM trade volume saw trade of more than 100 MUs for 9 days. The RTM segment registered volume of 7252 MU during Q1 FY ’24, increasing 16% over Q1 FY ’23.

The consistent growth of RTM segment reflects its increasing acceptance among distribution utilities and industries to efficiently manage their power demand-supply on a real-time basis.

The Term-Ahead Market (TAM), comprising intra-day, contingency, daily & weekly contracts, and contracts up to 3 months, traded 1118 MU during June ‘23, higher 47% on YoY basis. The total volume on the segment during the quarter was 3017 MU, a marginal decline of 3% over Q1 FY ‘23.

Green Market: Green Day-Ahead & Green Term-Ahead Market

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 272 MU volume during June ‘23, versus 540 MU achieved in June ’22. The segment achieved 910 MU during Q1 FY’24.

During June ‘23, Green Day-Ahead Market (G-DAM) achieved 166 MU volume with a weighted average price of Rs 4.95/unit. The market saw participation from 177 market participants during the month. During Q1 FY’24, the segment achieved 524 MU.

The Green Term-Ahead Market (G-TAM) achieved 106 MU volume in June ‘23, with average monthly price for Solar at Rs 3.24/unit, for non-Solar at Rs 5.76/unit and for Hydro at Rs 6.28/unit. The G-TAM segment achieved 386 MU during Q1 FY’24

Renewable Energy Certificate Market (REC Market)

A total of 5.33 lac RECs (equivalent to 533 MU) were cleared in the trading session at IEX held on Wednesday, 28^th June, with price of Rs. 745/REC.  A total of 8.75 lac RECs (equivalent to 875 MU) were traded during Q1 FY’24.

The next REC trading session at the Exchange is scheduled on Wednesday, 26^th July ‘23.

Energy Saving Certificates (ESCerts)

During June ’23, 2.44 lac ESCerts (equivalent to 244 MU) were traded on IEX, at the floor price of Rs. 1,840 per ESCert. A total of 5.69 lac ESCerts (equivalent to 569 MU) were traded in Q1 FY’24.

IEX is India’s premier energy exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable energy and certificates including renewable energy certificates as well as the energy saving certificates. The exchange platform enables efficient price discovery and increases the accessibility and transparency of the energy market in India while also enhancing the speed and efficiency of trade execution.

Power trading prices at IEX, dropped 30% YOY to Rs 4.74/unit in May. During the month, the exchange enabled 8,251 MU (million units) of power trades.